UK July CPI in line with expectations, GBP/USD stable around 1.3550

1. The UK's Consumer Price Index rose by 2.9% year-on-year in July, in line with market expectations. After the data was released, the GBP/USD exchange rate once rose to 1.3557, and is currently holding steady around 1.3550. The inflation data in line with expectations further reinforces market expectations that the Bank of England will keep interest rates unchanged in September. 2. A survey shows that nearly 90% of economists expect the Bank of England to remain on hold in the fourth quarter of this year. On Monday, GBP/USD touched a three-month high of 1.3571 before slightly retreating to 1.3520. 3. The market is waiting for the minutes of the July Fed meeting to be released later this trading day, seeking more clues on monetary policy. UK Prime Minister Burnham stated that Chancellor Healey will outline the government's economic strategy in his speech in September.